Komercni Banka As

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This meeting is being transcribed. Thank you for sharing your time with us today. It is the 30th of April, 2026, and we are going to discuss the results of Commercinibanka Group for the first quarter of this year, 2026. Please note that this call is being recorded. Our presenters today will be Jan Juchelka, Chairman of Management Board and CEO of Komerský Mánka, and Etienne Roulerc, Chief Financial Officer. We also have ready to answer your questions Ander Kučkovský, Chief Risk Officer, Miroslav Hirschel, Head of Retail Banking, Katarína Kurucová, Head of Corporate and Investment Ranking, Jitka Halbová, Chief Operations Officer, and Margo Simpson, Chief Digital Officer. As always, we will begin with the presentation of results, which will be later followed by a questions and answers session. During the presentation part, our participants will be on listen-only mode. We would appreciate if you could keep your microphones muted during that time. So that's it from me and now I would like to hand over to Jan Juchelka to begin the presentation. Thank you.

All right. Thank you for being with us. Welcome everyone. It's my pleasure together with the team to guide you through the presentation of Q1 2026 results. Before we start flipping the pages, Let me say that the first quarter of 2026 was framed by the fact that back in 2025 we finalized the transfer of retail clients to brand new, completely new technological stack, which is for us the technology was not the target, the technology was the enabler to finalize, let's say, much more simplified way we work we prepare innovations we are putting products in front of our clients and we do it in much less number of people after simplifying the organizational or the organigram in the way which you know which you know from the past so by closing 2025 we are also opening the quarter, which made us much more busy with decisions related to volumes, related to sales, related to commercial activities, obviously related to management of capital, liquidity and risk. But we were and we continue being very much oriented towards the sales and towards getting back the market shares, which we believe we deserve. How it was translated into numbers, you can start seeing at page number four. Page number four, and I will read it from the right to the left, is showing very, very strong traction on the side of sales of loans, 7.6% on year-over-year basis, and even almost 1% chipped in vis-a-vis the last quarter of 2025, which was already on its own. very strong. Then at these numbers, there is strong contribution of corporate and strong contribution of retail. So we are glad that both engines are working and very high performance. Let me say housing loans. Here we are taking from the market what is ours, which is more than 20% of the newly produced mortgage loans. on the Czech market and taking the benefit from the wave of either new financing or refinancing of existing loans. On the side of deposits, we are growing by 8.7% on year-over-year basis. Here we are consciously deciding on building durable long-term foundations for the future growth of loan productions and the financing of Czech economy. And again, when we compare deposits with the previous quarter, it's almost 4% on top of it. Assets under management, even though some of our subsidiaries were making a very good job, for example, a pension company and the insurance business went up by 5% each, the sales of investment funds and investment solutions was somehow lagging behind our expectations, even though might be growing by almost 1%. Queue on queue, we are down by 3%. Having said that, I need to confess also the fact that by building the portfolio under management, mainly of Amundi and other products, mainly from private banking, we are also increasing the quality of these investments. So there is much less money market, short-term investments, and much more longer-term solutions, either from the field of equity investments or from the field of fixed income. Let me move to the balance sheet and capital. As always, we are very prudent. We are keeping the capital ratio at a very high level, 18.2%. Quarter one remains 16.8%. loans to deposits in safe territory of 80.1%, and both long-term and short-term indicators of our liquidity remain strongly above the required levels. RUT, we are delivering 14%. If RIG was linearized, we would be delivering almost 15%, 14.8%. The cost of risk remains in the territory of net release, which is representing high quality of our assets, despite the fact that we are growing the loan book much faster than it used to be a year before. All that translated into net income. We are at 4 billion CZK for the first quarter, translated into value per share, it's 21.23 CZK per share. Cost to income, 48.1, and again, if it was linearized, we would achieve 44.8. Even with 48.1, we are 2.2 percentage points below the first quarter of 2025. Most remarkable events here were that first the AGM approved distribution of profit for 2025 at the level which was presented by the Board of Directors at 25.6 CZK per share, so 100% distribution. The record date is 5th of May, the payment date is 25th of May. We have new or re-elected or reconfirmed members of the Supervisory Board, so the non-executive body, Cecil Bakteniev, which will remain the chairperson of the Supervisory Board, Hervé de Cadrel, independent director, Bruno Delas, head of IT for the entire Société Générale group, and Pierre Villeroa de Dalot, head of strategy of BursoBank, our sister company, our fully digital sister company in France. By reading these days, I am proud to say that we are increasing the expertise and skills collective skill set of this non-executive body of Comerční banka and even going, let's say, to the level of modernization and higher level of overall knowledge of what is important and strategic for Comerční banka of today. Pierre-Bille Roy de Gallo was also elected as an audit committee member and we have KPMG confirmed as a statutory auditor. When speaking about fast growing volumes and commercial activities of KB, it couldn't go forward without growing our client base. KB Group customers are at the level of almost 2.3 million, up by almost 60,000 year-over-year. KB users is very close to 1.7 million users, so enjoying the new solution. of KBplus platform is half a million, a larger number compared to first quarter of 2025. Also, as I mentioned at the beginning, thanks to the fact that we have finalized the migration of clients from the old to the new systems. Capital and liquidity enhancement, we were active on the markets. We successfully printed 750 million euro covered bonds more or less in the middle of the peak of the crisis in Iran. So we are glad to say that also when referring to the pricing of this issue, Komershne Banka's quality, assets quality was recognized by the investors in a very positive way. We have also issued tier 2 instruments at the level of 150 million euro, working on optimization of our capital structure. We can move to the next page, please. The macroeconomic environment remains very stable, very predictable. We are lucky to make our business in a growing country. The GDP end of year growth was 2.6% and we expect similar pace of growth also for 2026. The unemployment remains in very mild levels of 3.2% at the end of February. Industrial production kicking back 1.3% of growth, and construction 4.1%, which is very strong growth. So it seems that not only private investments, but also the overall atmosphere created by the new government, which is very much pro-investment and pro-business, is playing a role here. On one hand, households mainly driving the growth of GDP, followed by strong activity of corporate scene and supported by active approach of the government towards investments. Inflation, 1.9%. Everyone speaks about inflation, the translation of the energy prices into the inflation, etc. For the time being, Czech National Bank has not yet reacted on anything by increasing the rate. Nonetheless, everywhere in the world, obviously, there is strong debate what might be happening on this front. IE Czechoruna interest rates, remain unchanged at the level of Chernobyl 2 weeks repo rate, 3.5%. And we have 10 years IRS growing by 82 bps to 4.38 and 10 years GAVI is growing to 4.93, so reflecting on those potential tensions on the side of inflation. Czech Koruna weakening on QonQ, so reacting on The existing geopolitical tensions on lower-term horizon year-over-year is stronger by 1.8 or eventually by 7.6 versus euro or versus US dollar, respectively. So we can move to the commercial and business results. If you allow me gross loans, 7.6% up. You can see on the right-hand side, upper part of the page, that it was driven by mortgages to retail clients by almost 10% growth. Hand-in-hand with financing of businesses, 8.4%. We are back to the market with consumer lending. Here I can say very proudly that our solution, which is embedded into KBplus and increased activity of both the branches and the contact center, are bringing back very positive growth of volumes of consumer lending. without jeopardizing in any particular moment the cost of risk. So we are back to the market, growing, taking the higher market share than last year, and penetrating mainly our clientele, which is creating enough space for us to be fast, efficient, and without impacting negatively the risk part of this equation. The sales volumes of housing loans, which is mortgages mainly, and to some extent also the housing loans by Mudra, are up by 107.3%. So we are very close to record high levels of origination of mortgages. We are taking the appropriate part of the market share from the new production. And let me remind that we do that with one half of people compared to the times before the transformation. So on that front, there is a lot of simplification, a lot of digitization of the process, a lot of redesigning of our mortgage products, and being very attractive for the retail clients and for the third parties. So that is loans. Sorry, just one more sentence. When you break down the loans for businesses, you see that also our 100% owned leasing company named SGEF delivered even double-digit growth in the first quarter at 11.5%. which is, let's say, moving them forward in the peloton of their competitors. And speaking about large corporations, we were all over the place for the transformative transactions of our large clients. The smaller businesses were somehow lagging behind, but lagging behind by growing by 7%. I think it's a For me, at least, it's a joy to make this comment of lagging behind by 7%. So, let me move to the next page. Obviously, when speaking about loans, and you will see that in the speech of Etienne, there is a compression of margins of the markets. We are floating with the market as far as margins are concerned. On that front, let's see whether some sort of normalization will be in place in the next period of time, in the upcoming period of time, which might help us also on the side of creating more NBI and growing much faster the top line. The selective corporate deals, we are all over the place, municipal clients, municipal companies or municipality-owned companies, large clients of CPF, huge real estate transactions and others. So public, private, commercially played a significant role in these important deals and by servicing our key clients. I don't have too much to say here, so we can move to deposits. The deposits were growing by 8.7%. The composition is pretty clear. It's individual deposits by 11%, business deposits by 8%. So nicely, I would say, nicely distributed. We do care about the healthy and durable and sustainable composition of these foundations of our funding vis-à-vis the ambitious projects. targets on the side of financing of Czech economy. In the composition of products, you can see that 18% growth by saving accounts and term deposits is beating the close to zero or mediocre growth of 1.2% on the side of current accounts. We were chipping in almost 4% growth vis-a-vis the last quarter of 2025. It's very important for us that the momentum which we created already in the fourth quarter is further accelerated and is bringing more volumes into the balance sheet of KB. On the flip side of the same coin, we have assets under management growing in a very mild way of 0.8%. You can see, and I have already mentioned that at the beginning, that the insurance origination is beginning 4.5% and a pension company 5% of growth, whereas the solutions which we are selling together with Amundi are below the expectation. Nonetheless, having said that, we have in Amundi solutions much less money market, much more equity and fixed income, so we believe that also on that front it will be longer term, durable, and the trend will be step-by-step improved, step-by-step improved. That's the part they're likely to deposit. That's probably also the time to hand over to Etienne. Thank you.